How do i fix Form 8962 Federal Reject Codes

If your federal tax return was rejected because of a Form 8962 (Premium Tax Credit) issue, don't panic. These rejections are usually tied to Marketplace health insurance coverage reported on Form 1095-A.

This guide explains what each reject code means and how to correct the issue so you can resubmit your return successfully.

Before You Start

Have the following ready:

• Your Form 1095-A (Health Insurance Marketplace Statement)
• Access to the Health Insurance section of your TaxSlayer return

Keep in mind that Form 8962 is created automatically based on the information you enter. You can't edit Form 8962 directly. Any corrections must be made in the Health Insurance section of your return.

Reject Code 8962-070: Form 8962 Required but Missing

What This Means

The IRS records show that someone on the return had Marketplace health insurance with advance Premium Tax Credit payments, but Form 8962 was not included with the return.

How to Fix It

1. Open your return and select Fix Return.
2. Go to the Health Insurance section.
3. Answer Yes when asked whether anyone on the return had Marketplace insurance.
4. Enter all information exactly as it appears on Form 1095-A.
5. Press continue to save the changes to your return
6. Navigate to the E-file section and follow the prompts to resubmit your return(s)

If You Did Not Have Marketplace Coverage

If no one on the return had Marketplace insurance, you may need to submit an ACA explanation to the IRS.

To do this:

1. Return to the Health Insurance section.
2. Select No Tax Family Member had Marketplace Coverage and we had Employer Health Insurance.
3. Continue to save the changes to your return
4. Navigate to the E-file section and follow the prompts to resubmit your return(s)

Note: This option becomes available only after receiving IRS reject code 8962-070. Selecting it sends an ACA explanation stating that no Marketplace coverage was used.

Reject Code F8962-063: Form 1095-A Information Not Reported

What This Means

The IRS expected Form 8962 to be included with your return, but the Marketplace insurance information from Form 1095-A was not entered.

How to Fix It

1. Open your return and select Fix Return.
2. Go to the Health Insurance section.
3. Answer Yes when asked about Marketplace insurance coverage.
4. Verify that all household members are listed correctly.
5. Enter all information from your Form 1095-A.
6. Complete the section and resubmit your return.

Helpful Tip

Even a small typo on Form 1095-A can lead to a rejection. Compare each entry carefully with the form provided by the Marketplace before resubmitting.

Reject Code 8962-057: Shared Policy Allocation Error

What This Means

The IRS could not verify the allocation of Marketplace policy amounts because the Form 1095-A policy covers more than one tax household.

This situation often occurs when:

• Divorced or separated parents share coverage for a dependent
• Family members file separate tax returns
• Multiple unrelated individuals share the same Marketplace policy

How to Fix It

1. Select Fix Return.
2. Go to the Health Insurance section.
3. Review your Form 1095-A information.
4. Indicate that the policy is shared, when applicable.
5. Enter the allocation percentage that applies to your return only.
6. Complete the section and re-file your return.

Important

Enter your share of the allocation percentage, not the percentage used by the other taxpayer, even if their Social Security number appears on the policy. For assistance with completing the Shared Policy Allocation, please refer to our article.

After You Make Corrections

Once you've updated your information:

1. Go to the E-file section.
2. Follow the prompts to resubmit your return.
3. Watch for confirmation that the IRS has accepted your return.